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ANJUMAN-I-ISLAM’S ALLANA INSTITUTE OF

MANAGEMENT STUDIES

STRATEGIC MANAGEMENT

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Porter’s 5 Force Model Analysis for Toothpaste Industry in India

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SUBMITTED TO :PROF. A.K.KHER

PREPARED BY :MMS-2ND YEAR (2012-13) - MARKETING

NAME ROLL NO.

BAKHTIYAR ANSARI (05)

ASIM MOMIN (18)

FAZLUR RAHMAN (33)

YAQUB FAROOQUI (40)

SAUD GAZALI (41)

ROHAN MOMIN (46)

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1. INTRODUCTION

Brushing has become a habit.

Global Oral Care market estimated at over $12.6 billion.

97% of the population in developed countries use toothpaste.

In india, over 60% of the population use toothpaste.

In Ancient India, oral hygeine was taken care by home made

and

ayurvedic products.

Current toothpaste market in India stands at over Rs.3000

crores.

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CONTD…

Tooth Decay- primary oral problem in India as per World

Dental Federation.

Per Capita Consumption of toothpaste in India – 127 gms.

Per Capita Consumption of toothpaste in Europe – over

300 gms.

Toothpaste Market in India- over Rs.3100 crores.

Toothpowder Market in India – around Rs.450 crores.

Mouthwash Market in India – around Rs.85 crores.

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2. PORTER’S 5 FORCE ANALYSIS

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3) COMPETITIVE INDUSTRY RIVALRY

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48-50% of Market Share

28-30% of Market Share

5-7% of Market Share

KEY PLAYERS

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OTHER PLAYERS15% of Market Share

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4. BARGAINING POWER OF BUYERS

 

The Bargaining power of buyers is very low.

Since it is a personal care product, there are no real fluctuations in

the consumption volumes.

The various brands have successfully differentiated themselves

from each other.

Although there are no real switching costs involved as such, people

still consciously or sub-consciously continue to purchase the same

brand.

The price is more or less constant, although there are at times some

offers such as “Free Toothbrush”, “50 gm free” etc.

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5. BARGAINING POWER OF SUPPLIERS

 

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Bargaining power of Suppliers - Low.

Existence of big players like Colgate-Palmolive,

Hindustan Unilever

and Dabur.

Manufacturing is largely outsourced. Most of the

manufacturers in the

Industry are integrated Backward as it helps them to cut

transportation costs, improve profit margins and make

the firm more

competitive.

There is no real uniqueness in the resources of various

suppliers.

No real differentiation in the inputs.

Bargaining power of suppliers

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6. THREAT OF POTENTIAL ENTRANTS

 

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Sector is not Capital Intensive.

P & G’s CREST

THREAT OF POTENTIAL ENTRANTS

CREST is the biggest oral care brand in the US.

CREST Pro-Health Toothpaste received the ADA seal of acceptance for protection against six different dental health conditions: cavities, gingivitis, plaque, sensitivity, teeth stains, and bad breath. Company CEO Bob Mcdonald has earlier said he intends to add a billion new customers from countries like India and China to the

company’s existing customer base of 5 billion.

Colgate has continued to maintain its leadership all these years.

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7. THREAT FROM SUBSTITUTES

 

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THREAT FROM SUBSTITUTES

 

There are traditional methods available as substitutes.However, they are not very threatening as it is very unlikely that toothpaste users would shift to traditional methods whereas traditional method users shifting to toothpowders and then to toothpaste is very much possible.

Plant LeavesPlant Twigs and Stems

Fruits and Its Parts Other Plant Parts Powders

Mango Babul Coconut Walnut Bark Salt

Cashew Neem Walnut Shell Other traditional Powders

Coconut Banyan Rice Husk

Coconut Shell

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TOOTPOWDERS

Around 24% of Indian Households use Toothpowder.Around Rs.500 crore market.Lal Dant Manjan toothpowder boasts of around 30 per cent of the

market share whereas Colgate claims 38%.In the long run MNCs are looking to this product as an upgradation process, for example, to upgrade people who still use a datun to toothpowder and then to toothpaste.

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